( 1 ) THIS is a petition by Uttar Pradesh Financial Corporation (herein REFERRED TO to as the Corporation) under Sections 446 and 537 of Companies Act for leave to sell the properly, which is slated to be constituting security of Uttar Pradesh Financial Corporation. The facts, as stated in the petition, are as under:-

( 2 ) THAT the petitioner Corporation had sanctioned in all five loans, aggregating to an amount of Rs. 30,60,000. 00 to the company in liquidation between November, 1983 and October, 1985. Under the said loans, a sum of Rs. 29,65,040. 00 was actually disbursed to the company in liquidation. It is further alleged that the aforesaid loans were secured, inter alia, by equitable mortgage of land and building situated at B-12, Scctor-VIII, Noida and by hypothecation of plant and machinery. On company in liquidation committing several defaults in repayment of the said loans, the petitioner corporation served a notice on the company in liquidation on or about 9th November, 1987 calling upon it to clear the balance amount outstanding at that time and threatening to take over the possession of the company s unit in exercise of the corporation s powers under Section